SunSirs: China's Lithium Iron Phosphate Hits Its “Moment in the Spotlight”

According to China Chemical Information Weekly, lithium iron phosphate prices have doubled from CNY 30,000 to 60,000!

The lithium battery industry knows that the second half of 2025 finally marks the “moment in the spotlight” for lithium iron phosphate materials.

Starting from Q4 2025, LFP market prices have surged significantly. As of today (January 27, 2026), energy storage-grade LFP materials have climbed from ¥30,000/ton in June 2025 to ¥59,000/ton—a nearly ¥30,000/ton increase, nearly doubling in price.

Industry consensus holds that this price surge is not a short-term fluctuation but a systemic recovery driven by cost pressures, demand growth, and structural shifts within the sector. This upward trend is projected to persist through the fourth quarter of 2026.

Industry insiders further note that rising raw material costs for LFP, coupled with expanding market demand, are squeezing profit margins. Consequently, price increases represent an inevitable industry trajectory.

Hunan Yueneng's Profits Surge Past 1.1 Billion Yuan, Reaching New Heights!

The unexpected surge in LFP prices continues to drive profit recovery for LFP manufacturers. On the evening of January 19, Hunan Yueneng released its 2025 earnings forecast, projecting net profit attributable to shareholders of listed companies between CNY 1.15 billion and CNY 1.4 billion for 2025—representing a year-on-year increase of 93.75% to 135.87%.

Regarding the reasons for the substantial growth, the announcement stated that the rapid development of the new energy vehicle and energy storage markets during the reporting period drove demand growth for lithium battery cathode materials, coupled with structural supply shortages. Consequently, the company's phosphate cathode material product sales saw significant expansion.

Impressive “Report Card”: Fourth-Quarter Profit Soars Over 500%!

As a crucial raw material for lithium batteries, the price of lithium iron phosphate has long been under market scrutiny. However, it had been declining for two consecutive years prior to this.

From 2021 to 2023, the LFP industry rapidly transitioned from supply shortages to oversupply. In 2023, LFP prices plummeted sharply, falling from 166,000 yuan per ton at the beginning of the year to 46,000 yuan per ton by year-end. Prices continued to fluctuate downward over the following year, only beginning to stabilize in 2025.

In the fourth quarter of 2025, LFP prices entered an upward phase once again, prompting a collective price hike among LFP cathode material manufacturers. Notably, Hunan Yueneng's profits also reached their peak during this quarter.

According to previously released quarterly reports, Hunan Yuneng achieved a net profit attributable to shareholders of RMB 645 million in the first three quarters. This implies that the company's net profit attributable to shareholders for the fourth quarter will range between RMB 505 million and RMB 755 million, with a quarterly net profit median of approximately RMB 630 million. This represents a year-on-year surge of over 500% and a quarter-on-quarter increase of 85%.

Leading companies' explosive growth signals the industry's golden cycle has arrived!

A new golden cycle is here! Following the surge in terminal energy storage demand and across-the-board price hikes for lithium battery materials, lithium battery companies' 2025 “report cards” provide further compelling evidence of the market's rapid recovery.

As of January 26, 2026, representative companies across lithium battery segments have released positive annual performance forecasts, indicating potential profit reversals or explosive growth.

Regarding the industry's future trajectory, industry insiders indicate that robust demand for energy storage has brought the lithium battery supply chain to a supply-demand inflection point. As the supply-demand structure improves, the trend toward high-end products and overseas expansion is expected to generate excess profits for leading companies, signaling a cyclical turning point in profitability for the iron-lithium battery sector.

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